National Research Corporation Reports Q4 Losses, Shares Drop 9.1%
Stock Performance Compared to Market Index
Shares of National Research Corporation (NRC) fell by 9.1% following its earnings report for the quarter ending December 31, 2024. In contrast, the S&P 500 index only saw a minor decline of 0.6% during the same period. Over the past month, the stock has slipped 7.4%, whereas the S&P 500 has posted a slight growth of 0.4%.
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Quarterly Financial Highlights
In the fourth quarter of 2024, NRC reported earnings per share of 28 cents, down from 36 cents in the same quarter last year. Revenues decreased to $36.9 million from $38 million in the prior-year quarter, and net income fell to $6.6 million from $8.9 million year-over-year.
Rising Costs Affecting Operating Income
Total operating expenses rose to $27.3 million, up from $26.3 million, due to increased direct expenses as well as selling, general, and administrative costs. Consequently, operating income decreased to $9.6 million from $11.7 million, impacted by these rising costs and lower revenue figures.
Key Metrics to Note
As of December 31, 2024, the company’s total recurring contract value was approximately $133.2 million. At the quarter’s end, net indebtedness—calculated by subtracting cash and cash equivalents from total borrowings—stood at around $58.5 million.
Interest expenses also grew, reaching $0.7 million, compared to $0.3 million in the same quarter the previous year.
Challenges to Earnings Performance
NRC’s declining revenues and compressing margins significantly affected its earnings. An uptick in SG&A costs further pressured profitability, along with a notable increase in interest expenses which impacted net income.
Share Repurchases and Dividends
In alignment with its capital allocation strategy, NRC implemented share repurchase and dividend initiatives during the quarter. The company bought back approximately 393,000 shares for around $7.3 million and declared a quarterly dividend of 12 cents per share, amounting to about $2.8 million in total.
Stock Insights and Future Prospects
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National Research Corporation (NRC): Free Stock Analysis Report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
